Cambridge Amazon warehouse developer will now pay most of $13.7M charges after region's error

The developer of the Amazon warehouse on Blair Road in Cambridge will now pay at least 75 per cent of $13.7 million in development charges after the Region of Waterloo made a mistake in assessing the initial bill.

A decision released by the Ontario Land Tribunal on Nov. 27, 2024 found the region had made an error when assessing how much the warehouse would need to pay in development fees. Development charges are used in the regional budget to cover costs of capital infrastructure required to service new developments.

In July 2022, the region asked developers of the property at 140 Old Mill Road in Cambridge to pay $9,082,948.59 in development charges to build an industrial building, in this case, a warehouse.

The developer — identified as 140 Old Mill Road Limited Partnership and 140 Old Mill Road Coinvest Limited Partnership but often referred to as Old Mill in the tribunal documents — paid that bill in August 2022.

In November 2022, the region realized the original amount was incorrect and they should have charged $22,802,521 — a difference of just over $13.7 million.

The tribunal documents showed the developer argued the region had already issued a building permit, collected the money and the invoice had been certified by the regional treasurer.

The region argued they were unaware the "warehouse" was actually a fulfilment centre for the online retailer Amazon. The region said being a fulfilment centre took the building out of the definition of an industrial building and so it didn't qualify for the same development charges as a warehouse.

The tribunal found the law "does not permit a municipality to impose an additional development charge or a corrected amount after a development charge has already been assessed, collected, and certified, and a building permit issued for the development."

The region appealed that decision to the Ontario Divisional Court on Dec. 11, 2024 but now says the two sides have settled the case out of court.

The Ontario Land Tribunal says it received an email on June 17 that the two sides had reached a settlement but has not yet received formal notice that the appeal will be abandoned.

The region announced Tuesday the developer "will pay over 75 per cent of the charges originally sought by the region." The region did not specify exactly how much the developer will pay of the fees.

"Both parties agreed to settle in order to avoid the costs of further litigation, allowing those funds to instead be directed toward community priorities," the region's statement said.

Coun. Michael Harris, who also chairs the region's strategic planning and budget committee, said he was pleased with the decision.

"This is a good deal for residents and for the Region of Waterloo," Harris said in the media release. "It will ensure additional funding for major infrastructure, helping us achieve our strategic objectives as the region continues to grow."